South Forest Hill Residences.House prices in Toronto, Canada fell in May. The rapid rise in interest rates further extinguished the once-hot housing market.Please Visit: South Forest Hill Residences to Get Your VVIP Registration Today!
House prices in the greater Toronto area (GTA) fell for the fifth month in a row to C $1.07 million (US $833528) in July, down 6.2 per cent from June and 19.5 per cent from their February peak, but up 1.2 per cent from a year earlier. The decline in Canadian house prices has accelerated in recent months, with a total decline of 13.3 per cent since April, the biggest decline in four months since tracking the indicator began in 2005.
In July, home sales in the Toronto area fell 47% from a year earlier, while new housing supply fell 2.7% from June. However, as the decline in sales accelerated, the total number of homes for sale on the market was still up 3% from June. This will benefit the buyer’s market.
Brendon Cowans, vice president of sales at Property.ca, a Toronto-based brokerage, believes that the market has moved in favour of buyers, and he expects house prices to continue to fall as the Bank of Canada raises interest rates to help slow inflation.
Farah Omran, an economist at the Bank of Nova Scotia, says more people now expect house prices to fall. Buyers are feeling less anxious, and people are looking forward to a cheaper price.
After an unprecedented rise in house prices during the epidemic, Canadian house prices reversed abruptly after the central bank began aggressively raising interest rates in March to rein in the highest inflation rate in 40 years. The market believes that the “pain” of real estate has only just begun.
Kevin Crigger, chairman of the TRREB, said in a statement: in hindsight, the Bank of Canada started raising interest rates too late. Banks have sharply raised lending rates in a short period of time, which has dampened consumers’ enthusiasm for buying homes. Therefore, the Federal Government has the responsibility not only to maintain confidence in the financial industry, but also to make property owners confident. In addition, the authorities concerned can consider extending the mortgage repayment period of owners to 40 years under high interest rates, so as to alleviate the pressure on property buyers.
Another report showed a similar trend in Vancouver, Canada’s most expensive market, with home sales falling month-on-month in July, forcing benchmark prices down 2.3 per cent to C $1.2 million.